Stolton and Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receivea salary allowance of $10,700 and that Bright should receive a $20,600 salary allowance. Any remaining income or loss is to be sharedequally.Determine each partner's share of the current year's net income of $54,000.Note: Enter all allowances as positive values. Enter losses, if any, as negative values.Allocation of Partnership IncomeStoltonNet incomeSalary allowancesBrightTotal$54,0000Balance of incomeBalance allocated equally0Balance of income$0Shares of the partners$0 $0

Balance allocated equally = 22700/2 =11350 each

Answered: Stolton and Bright are partners in a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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